Michigan's top research universities fuel 21st century auto industry

MACKINAC ISLAND, Mich. – Michigan’s three research-intensive universities power the state’s resurgent automotive industry with more than 3,600 science, technology, engineering and mathematics (STEM) graduates annually, and spent more than $300 million on auto-related research in the past five years.

Those are among results of an independent analysis conducted by Anderson Economic Group of Lansing and Chicago for the University Research Corridor's annual technology sector study. The report outlines the contributions of URC members Michigan State University, Wayne State University and the University of Michigan to auto technology and highlights the competitive pressures facing the American auto industry.

"In order to respond to industry challenges, automakers have continually innovated to improve their products and operations," said Patrick Anderson, CEO of AEG. "Michigan has been home to much of this innovation due to the clustering of auto manufacturers and their suppliers in the state. These top institutions have created and sustained a pool of talent that has attracted both domestic and international companies to locate their research centers here. Michigan still accounts for fully 28 percent of all jobs in the U.S. automotive sector, with more than 136,000 Michigan residents employed in the industry. This report shows how Michigan State, the University of Michigan, and Wayne State are supporting innovation in our cornerstone industry."

Some highlights from the report:

The auto industry faces ever-higher demands to improve performance and quality at a lower cost. The URC universities are involved in every step of the innovation process to meet these challenges.

The URC universities supply talented workers to the auto industry, conferring more than 3,600 degrees annually in auto-ready disciplines.

Universities play a direct role in auto industry innovation by spending $60 million annually of their R&D dollars on auto-related research and development.

Between FY 2007 and 2011, the URC universities spent $300 million on over 1,400 auto projects. Nearly two-thirds of this research was funded by federal and state governmental agencies.

Private industry funded 28 percent of all auto research at the URC universities in the past five years, which is nine times the average share of industry funding for all university R&D at these institutions.

The 2mm project that involved U-M and WSU that limited and controlled the gaps between auto components

The connected vehicle research at U-M and WSU that promises improved safety by allowing vehicles to “talk” to one another and the infrastructure

Biofuels research that is currently being done by MSU on new types of feedstock that can be grown more economically to lower fuel costs and improve fuel efficiency.

“Universities are critical to Ford and the rest of the auto industry as they provide an additional talent pipeline and aid us in early stage research and development,” said Bill Ford, executive chairman of Ford Motor Company and Chairman of the New Michigan Initiative of Business Leaders for Michigan. “The partnering of universities and companies provides students with real-world problems to research and solve, while allowing companies to leverage external expertise in new technical areas.”

The Auto Sector report is the fifth annual industry sector report commissioned by the URC and conducted by AEG. Below are brief summaries of the previous reports:

Information and Communication Technology (2011)

The URC universities (Michigan State University, University of Michigan and Wayne State University) spent nearly $74 million on research projects with a strong IT focus in FY2010.

Of the nearly 150 start-ups the URC has assisted in creating since 2001, approximately 40 percent have had a distinct ICT component.

Information technology employs about 3.5 percent of the state’s workforce, or about 135,000 workers, and is significant not only as its own sector but as the underpinning for much of the major industry activity and growth represented in previous sector reports.

The industry pays high wages, with employees earning about $20,000 more than other workers in the private sector.

More than 50 percent of all alternative energy R&D supported the auto industry.

About the URC

The University of Michigan, Michigan State University and Wayne State University formed the URC to leverage their collective assets, encourage collaboration and increase business partnerships, with an overarching goal of accelerating statewide economic development. The URC has a net economic impact on Michigan's economy of $15.2 billion.